Real Estate - Lebanon

Lebanon

The Real Estate market market in Lebanon is expected to reach a value of €596.40bn in 2024.
Among the different segments, Commercial Real Estate is projected to dominate the market with a market volume of €435.00bn in the same year.
Looking ahead, the market is expected to grow at an annual rate of 2.70% between 2024 and 2028, resulting in a market volume of €663.50bn by 2028.
When compared globally, China is anticipated to generate the highest value in the Real Estate market market, with a projected value of €125.80tn in 2024.
The real estate market in Lebanon has been heavily impacted by political instability and economic crisis, leading to a decline in property prices and a decrease in demand.

Key regions: United States, China, Japan, Germany, United Kingdom

Mercado

Región

Comparación de regiones

Moneda

Analyst Opinion

The Real Estate market in Lebanon has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Lebanon have shown a strong preference for investing in real estate properties. This can be attributed to several factors, including the stability and security of the real estate market, the potential for high returns on investment, and the cultural significance of owning property in Lebanon. Additionally, Lebanese customers have a strong affinity for luxury properties, with a particular focus on high-end residential and commercial properties.

Trends in the market: One of the key trends in the real estate market in Lebanon is the increasing demand for residential properties. This can be attributed to the growing population and urbanization in the country. As more people move to urban areas, the demand for housing has increased, leading to a rise in residential property prices. Additionally, there has been a surge in the development of luxury residential projects, catering to the demand for high-end properties. Another trend in the market is the growing interest in commercial real estate. Lebanon has a vibrant business environment, with many local and international companies setting up offices in the country. This has led to an increased demand for commercial properties, such as office spaces and retail outlets. The development of modern office buildings and shopping centers has been on the rise to meet this demand.

Local special circumstances: Lebanon's unique geographical location and rich cultural heritage make it an attractive destination for both local and international investors. The country's proximity to Europe, the Middle East, and Africa, as well as its historical and cultural significance, have contributed to the growth of the real estate market. Additionally, Lebanon has a strong legal framework that protects property rights, providing a secure environment for real estate investments.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the real estate market in Lebanon. The country has experienced steady economic growth in recent years, driven by sectors such as banking, tourism, and real estate. This has led to an increase in disposable income and purchasing power, which in turn has fueled the demand for real estate properties. Furthermore, the government has implemented policies to attract foreign investments in the real estate sector. These policies include tax incentives, streamlined processes for property registration, and the establishment of special economic zones. These measures have encouraged both local and international investors to invest in the Lebanese real estate market. In conclusion, the Real Estate market in Lebanon has been experiencing significant growth and development due to customer preferences for real estate investments, the increasing demand for residential and commercial properties, the country's unique geographical location and cultural heritage, and the underlying macroeconomic factors such as steady economic growth and government policies to attract foreign investments.

Methodology

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.